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Press Releases...................................................................................................................................................................................................................................................................................
The All India Gems & Jewellery Trade Federation opposes the proposed Direct Tax Code (DTC)The All India Gems & Jewellery Trade Federation (GJF), the national body of the jewellery trade, and the apex industry body Gems and Jewellery Industry (GJI) have opposed the proposed Direct Tax Code. Both the industry bodies have also made representations to the Finance ministry to seek modifications in the DTC. Addressing the key issue of such provisions Mr. C. Vinod Hayagriv, Chairman, All India Gems & Jewellery Trade Federation (GJF), “GJF strongly objects to 2 key issues of DTC which includes Search & Seizure provisions and 10 % TDS on all payments.” “GJF has more than 300,000 manufacturers, wholesalers and retail jewelers in India which is already reeling under the effects of global recession. If our suggestions are not considered and necessary changes are not incorporated in the DTC, the proposed provisions will be highly detrimental to the operations of the assesses of the Gems and Jewellery Industry (GJI) and have the potential to adversely affect the very sustenance of such assesses”, he added. The seizure of such stock-in-trade of jewellery, bullion and precious stones would create great difficulties for the assesses of the GJI as it would result into cessation of their manufacturing operations resulting into loss of sales and break down of their entire business activity. This is total discrimination towards a single industry, such extreme measures are not applied in any other industry so far. In case the amendments are not made in time, GJF shall call for a nationwide bandh and stall activities across the country. “We also strongly oppose the deduction of 10% tax on all payments made for gold, diamonds, jewellery etc, as it would result in blockage of working capital for the jewellers who are presently facing a major liquidity crunch and refunding TDS amount from the government is another tedious task. The industry cannot survive in the current format and if changes are not done the industry will have to shut down as jewelers across India are very agitated, we have received thousands of emails and calls to protest on the same”, said Mr. Ashok Minawala, former Chairman, All India Gems and Jewellery Trade Federation. The finance ministry of government of India, during its last Budget- 2009 has made a commitment towards pursuing structural changes in the direct tax system by releasing a new DTC to consolidate and amend the law relating to direct taxes. Pursuant to this, a Draft DTC along with a Discussion Paper has been released to the public for debate in 2009. Based on the inputs received, the Government proposes to finalize the DTC Bill for its introduction in the Parliament. A representation has been earlier filed by the GJF, who speaks for more than 300,000 manufacturers, wholesalers and retail jewelers in India. GJF has asked the Ministry of Finance in its representation, to relax search and seizure provisions that are discriminatory and non practical. For further information contact
Erudite PR – 2432 8002
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